hi all,
if we hold stock A,
ex-date = 15th
"to-be register by date" = 18th
If we sell stock A on 15th, can we get dividend?
or we need to sell on 18th in order to get dividend?
High Dividend Counters, Better than putting in FD
High Dividend Counters, Better than putting in FD
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Mar 23 2011, 11:14 PM
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Junior Member
62 posts Joined: Jul 2010 |
hi all,
if we hold stock A, ex-date = 15th "to-be register by date" = 18th If we sell stock A on 15th, can we get dividend? or we need to sell on 18th in order to get dividend? |
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Mar 25 2011, 09:29 PM
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#2
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Junior Member
62 posts Joined: Jul 2010 |
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Mar 26 2011, 11:16 AM
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#3
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Junior Member
62 posts Joined: Jul 2010 |
QUOTE(skiddtrader @ Mar 26 2011, 08:58 AM) Sifu rosdi1's answer is correct. Do not be confused about the lodgement date, just concentrate on the ex-date. oh..thanks all sifuReason for the 2 dates is because of the registering of new shareholders takes up to 4 days, or T+3. This is to ensure the selling party's name is wiped and the buying party name is entered. So for instance I hold the share on the 14th (assuming ex-date is 15th) and sold it to you on the same day in the market. My name will still be on the list until the 17th. But the last lodgement date will ensure my name will be wiped off because the records of me selling the share will appear on the 17th, so I can't get the dividends. But you as a buying party, your name will only start appearing on the 17th, so on the last lodgement date of the 18th, your name will appear as a new shareholder. This is to ensure we both do not get the dividends for the same share. And the deserving shareholder (which is you) get the dividend only. Only names appearing on the list of shareholders on the 18th will get the dividends, not earlier or later. So don't worry about the lodgement date as it's a requirement or something to publish it. The lodgement date is always T+3 (not including weekends) of the ex-date. There is always 3 dates in a dividend announcement; Ex-date = If you hold the share on 9am (market open) of this date, you get the dividend, if you sell before this (before 5pm yesterday), you don't. Lodgement date = Name changing of shareholders, not important for you to know. Payment date = This is when the cheques and e-dividends be paid from the coffers to the distributing office. Note: If you sold your share on the 15th, your name will still be on the list on the 18th, so means you will still get the dividends. But the new buyer will not get the dividends because his name will only appear on the 19th. |
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